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« Back to articles from category "Business Management"

The following article was published in our article directory on September 8, 2010.
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Australia's Major Mining Enterprises Escape the Fate of Tax Increases

Article Category: Business Management

Author Name: Amanda xzh

Lasted 18 days and later the Australian federal election, the independent members "battle" was finally adjourned on September 7. Australian Labor Party led by Prime Minister Gillard successfully won three independent members of the two support. At present, the Labor Party in Australia has reached the House of Representatives, 76 seats, by a narrow margin over Abbott led the opposition alliance 74 seats. September 7 at the Australian Labor Party leader in the parliament building in Girard, held a press conference that received federal election victory.

Analysts believe that the Australian Labor Party to stay in power that the previous lease of mineral resources has ignited will continue to advance tax, the major Australian mining enterprises escape the tax increase.

Earlier that day, the Australian central bank also announced the continuation of 4.5% benchmark interest rate unchanged. This is the line in May this year for 4 months since interest rates remain at that level.

As the leader of the opposition alliance, said several times before and after the Abbot in the general election will be canceled after the Labor Party introduced tax the resources of the project, therefore, this election has become a key resource tax abolition battle. Now the election dust has settled, the Labor Party's victory also means the implementation of tax resources, "there is no back arrow to open the bow." Analysts expect Australia's iron ore and coal mining enterprises will be implemented in the first two years of tax resources to pay a total of 10.5 billion Australian dollars in tax.

Relationship between resource tax revenue into the Australian government, and protection of assets and resources of Kaifa fair distribution of national income and other issues, the Labour Party Ti Yi Jin Guan resource tax imposed short-term Neihuisunhai Australian mining enterprises interest, long-Lai Shui, on Australia's Social justice is good. Previously, in order to obtain the left-wing voters, Gillard promised during the election, the government tax revenue from the resources will be used for infrastructure construction, improve benefits for retirees as well as a reduction of corporate taxes.

Constellation Asset Management said that although the Australian government at this stage only the coal and iron ore business tax, but tax rates are to change the scope and breath. He said the possible tax increases will add a new Australian mining sector, "uncertainty."

Australia's S & P/ASX200 index 7, 0.05% to 4573.2 points, slightly. Australian mining enterprises leading BHP Billiton and Rio Tinto fell 0.3% and 0.9%, to 38.44 Australian dollars and 74.35 Australian dollars. Australian dollar against the U.S. dollar also fell after the election results uncertain, mainly because the market is worried that Australia's mineral resource tax would undermine the competitiveness of enterprises and the economy.

Australia's central bank on the 7th Biaoshi, the present monetary policy is based on the borrowers in 10-year average lending interest rate determined by the level of, the broker suggesting the interest rate decision is appropriate, Yin Hui Gui economic growth in the recent trend of Australian inflation rate is closer Zheng Fu set goals and the global economy to a certain degree of uncertainty.

Australian central bank said that since the second half of the global economy grew faster than the previous year's growth trends, the future may again return to the track of the past; financial market conditions and stability than a few months before, but caution is still dispersion; global stock markets weak, the major economies sovereign credit bond yields also in the unusual lows; In addition, commodity prices declined from peak levels.

Australian central bank also noted that recent information shows that the Australian economy has entered a growth trend in range, but this growth is the huge public spending over the past year, driven, rather than the consolidation of the private sector based on consumption. Australian trade can enhance Australian public high income, and stimulate domestic demand, the future, but the early effects of expansionary policies will gradually subside.

Earlier, the Australian Bureau of Statistics, Australia in the second quarter gross domestic product (GDP) increased 3.3% year on year, Central Bi Zeng 1.2%, higher than market expectations of 2.8% and 0.9%, for the past three years, the fastest economic growth.

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